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Tuesday, February 4, 2014

Are Cracks Showing Between Eduardo Elsztain and Moti Ben-Moshe?

Will the business partnership between the new controlling
shareholders at IDB Holding Corp. Ltd. Eduardo Elsztain and Moti Ben-Moshe,
stand the test of time? Quite a bit has been written about the differences in
the two men's personalities, as well as their different approaches to business.

While Ben-Moshe is more extroverted before the media,
Elsztain is introverted. This was seen at the press conference Ben-Moshe held
following the court decision to transfer control of IDB, where he alleged that
he was a target for extortion by aides of Nochi Dankner. Elzstain's aides left
the room, apparently because of reservations about Ben-Moshe's remarks.

Sources
inform ''Globes'' that the friction between Elsztain and Ben-Moshe is
continuing, and may have escalated.

Last Thursday, following a meeting at the offices of Menorah
Mivtachim Holdings Ltd. To discuss the terms of a loan by the insurance company
to IDB, an argument broke out between Ben-Moshe and Elsztain. The issue was a
loan given to IDB Development in April 2012, the outstanding balance of which
is NIS 150 million.

Another disagreement broke out a few days earlier over the
appointment of IDB Development chairman Aharon Fogel as chairman of its
subsidiary, Discount Investment Corporation. Ben-Moshe urged the appointment,
but Elzstain opposed it. They ultimately decided to appoint Fogel as a director
on Discount Investment's board, at least for now.

Sources close to Elsztain and Ben-Moshe told
"Globes" that the tense atmosphere is exacerbated by Dankner's
investigation into Ben-Moshe's businesses.

Last week, Dankner filed a motion
with the court that included additional findings about Ben-Moshe, including a
probe by the German energy regulator into ExtraEnergie GmbH, owned by
Ben-Moshe.

Ben-Moshe and Elsztain said in response, "We are happy
with the partnership, and succeeding in working together to meet all the
challenges. We do not respond to rumors."